The decentralized autonomous organization of crypto lending and stablecoin project BarnBridge has unanimously agreed to comply with the potential demands and possible fines from the SEC.
Back in July, news broke that the BarnBridge DAO along with the individuals associated with the project were being investigated by the United States Securities Exchange Commission (SEC). Although the details of the investigation are still a mystery, the SEC’s involvement could mean that the protocol may have offered securities products to U.S. investors.
Voting on the proposal to comply with the SEC’s potential demands ended on October 12. But surprisingly, despite the magnitude of the decision, the proposal received only one vote from the BarnBridge core wallet, suggesting that the decision was made by a few elite members.
As per the proposal, founders Tyler Ward and Troy Murray will act as the DAO’s special delegates in dealing with the SEC. The DAO will be expected to pay all disgorgement amounts required by the SEC order while retaining the services of Douglas Park as its legal counsel.
One aspect of the proposal that raises a red flag is that Ward and Murray have been given the authority to distribute the proceeds from the sales of tokens from the DAO’s treasury. However, there was no mention of who or where the tokens will be sent to.
Following the SEC’s alleged investigation in July 2023, BarnBridge immediately closed its liquidity pools and halted operations. As of press time, there was no way to access the DAO’s discord channel, and the most recent post from the protocol was on July 7.
